Cyprus readies capital controls to avert bank run

Country agreed to painful rescue package with international lenders

Published: 03/27/2013 at 8:49 AM

(Reuters) – Cyprus is finalizing capital control measures on Wednesday to prevent a run on thebanks by depositors anxious about their savings after the country agreed a painful rescue package with international lenders.

Cypriots have taken to the streets of Nicosia in their thousands to protest against a bailout deal they fear will push their country into an economic slump and cost many their jobs.

European leaders said the deal averted a chaotic national bankruptcy that might have forced Cyprus out of the euro.